US-Iran Tensions Fuel Oil Price Surge
Crude oil prices surged by more than $1 a barrel on Friday, driven by fresh tanker attacks and escalating tensions between the US and Iran. The US-Iran peace talks showed no progress toward a ceasefire, fueling concerns about global oil supplies.
The Brent crude benchmark settled at $88.52 a barrel, up 1.67% from Thursday's close. The US West Texas Intermediate (WTI) ended at $82.40 a barrel, rising 1.42%. Both benchmarks posted weekly gains of 6.0% and 5.4%, respectively.
The rally was linked to growing tensions around the Strait of Hormuz, which carries about 20% of global oil and LNG supplies. However, shipping traffic has slowed as US-Iran relations deteriorate. Two vessels owned by Abu Dhabi National Oil Company came under attack while crossing the strait on Thursday, prompting the UAE to condemn the incident and blame Iran.
The US also warned Iran of further economic pressure, stating that it could maintain its naval blockade indefinitely if ceasefire talks remained stalled. A drone attack disrupted Russian crude exports from the Sheskharis terminal at the Black Sea port of Novorossiysk, adding another supply concern to the global oil market.